FX levels to watch: GBP/USD, EUR/USD, USD/JPY, USD/CAD

USD/JPY continues to be the poster boy for volatility in FX markets, although for now the plunge appears to have stalled.

EUR/USD currency cross
Source: Bloomberg

GBP/USD in the hands of the bears
A move off the lows of $1.4350 seems to be petering out, which could afford shorts the opportunity to add to positions. Further downward momentum below $1.4350 would take the pair on to the 2 February low of $1.4320, and then on to $1.4230 and then $1.4150. It would take a move back through $1.45 to cancel out the bearish outlook.

EUR/USD remains rangebound
The pair continues to oscillate in a range bounded by $1.1132 and $1.1250, providing clear levels for any breakout. A continued failure to push higher would suggest the pair is setting up for a test of the $1.11 area, with a break below here taking us towards $1.10 and the rising hourly trendline. 

USD/JPY looks to stop the rot
Having hit its lowest level since late 2014, USD/JPY is doing its best to move off the lows. A bounce would push the pair back to the ¥116.40 area, which would coincide nicely with both the previous support level from 5 February, and the descending trendline on the hourly chart. A turn lower from here would target ¥114.72 and then on to sub-¥114.

Now or never for USD/CAD
The rally in this pair faces a ‘do or die’ moment, having failed to push on beyond C$1.40 so far in the past 24 hours. If it does, then we look towards the C$1.41 peak from 3 February, with a failure to move higher suggesting that support levels around C$1.3850 and then C$1.31720 will be tested.

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